Japan Exchange Group (8697) AI Stock Analysis

• Market Cap: $1.84T
• Dividend Yield: 3.06%
• Average Volume (3M): 4.23M
• Price to Earnings (P/E): 29.2
• Beta (1Y): 0.99
• Revenue Growth: 6.93%
• EPS Growth: 6.05%
• Country: JP
• Employees: 1,249
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 16.42
• Shares Outstanding: 1,044,578,400
• 10 Day Avg. Volume: 4,149,110
• 30 Day Avg. Volume: 4,227,973
• PEG Ratio: 56.31
• Price to Book (P/B): 4.66
• Price to Sales (P/S): 9.68
• P/FCF Ratio: 18.83
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 8.13
• Enterprise Value/Gross Profit: 10.26
• Enterprise Value/Ebitda: 12.43
• 1Y Price Target: $2,049.24
• Price Target Upside: 16.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥2,062.00 ▲(16.79% Upside)

The overall stock score is driven primarily by strong financial performance, characterized by robust revenue growth, profitability, and cash flow management. Technical analysis supports a positive trend, though caution is advised due to overbought signals. Valuation metrics suggest the stock may be overvalued, but the dividend yield offers some compensation.

Japan Exchange Group Business Overview & Revenue Model

Company Description

Japan Exchange Group (JPX) is a comprehensive financial marketplace that operates multiple exchanges in Japan, including the Tokyo Stock Exchange and Osaka Exchange. The company facilitates the trading of equities, derivatives, and foreign exchange, serving as a vital platform for capital raising and investment. JPX plays a central role in the Japanese financial sector, providing a wide range of services such as market data, clearing, and settlement services, thereby promoting market transparency and efficiency.

How the Company Makes Money

Japan Exchange Group generates revenue primarily through transaction fees collected from trading activities on its exchanges. This includes fees from the buying and selling of stocks, bonds, and derivatives. Additionally, JPX earns income from listing fees charged to companies that want to be publicly traded on its platforms. Another significant revenue source is the sale of market data and information services, which provides investors and institutions access to real-time trading data and analytics. The company also benefits from clearing and settlement services, earning fees associated with the processing of trades. Strategic partnerships with financial institutions and technology firms enhance its service offerings and can lead to increased trading volumes, further boosting revenue.

Japan Exchange Group Financial Statement Overview

Summary

Japan Exchange Group exhibits a robust financial performance across all verticals. The income statement highlights strong revenue growth and profitability margins, while the balance sheet indicates low leverage and effective equity utilization. The cash flow statement reflects solid cash generation and conversion, enhancing the company's financial flexibility. Despite minor fluctuations, the company is well-positioned for sustained financial health.

Income Statement

The company shows a strong revenue growth trajectory with a consistent increase in total revenue over the years, particularly a 7.4% growth from 2024 to 2025. Gross profit margin remains high, consistently above 80%, indicating efficient cost management. Net profit margin is stable, slightly above 37%, suggesting effective profitability. EBIT and EBITDA margins also reflect strong operational efficiency, maintaining healthy levels. These factors contribute to a robust income statement performance.

Balance Sheet

The balance sheet reflects a sound financial structure. The debt-to-equity ratio is low at 0.15, indicating conservative leverage and low financial risk. Return on equity is consistently strong, showcasing effective use of equity to generate profits. The equity ratio is around 0.40%, reflecting a balanced capital structure with a significant portion of assets financed through equity. Overall, the company's balance sheet is stable with manageable debt levels.

Cash Flow

The company demonstrates strong cash flow management. Free cash flow has shown significant growth, particularly an increase of 15.6% from 2024 to 2025, indicating good cash generation capabilities. The operating cash flow to net income ratio exceeds 1, suggesting a healthy cash conversion from profit. Free cash flow to net income ratio is also favorable, reinforcing efficient cash utilization. These aspects highlight a positive cash flow position.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	167.28B	164.17B	152.87B	134.50B	135.64B	133.70B
Gross Profit	132.51B	133.33B	122.81B	66.93B	72.41B	105.06B
EBITDA	109.34B	107.45B	104.31B	85.91B	89.93B	89.09B
Net Income	62.35B	61.09B	60.82B	46.34B	49.95B	51.39B
Balance Sheet
Total Assets	72.35T	85.40T	80.68T	82.19T	71.46T	60.08T
Cash, Cash Equivalents and Short-Term Investments	61.84B	98.43B	128.02B	211.21B	211.35B	225.01B
Total Debt	52.49B	52.49B	52.48B	52.97B	52.47B	52.46B
Total Liabilities	72.02T	85.05T	80.34T	81.87T	71.14T	59.75T
Stockholders Equity	313.08B	340.82B	328.36B	312.73B	315.65B	321.39B
Cash Flow
Free Cash Flow	0.00	84.42B	73.02B	55.58B	43.26B	56.31B
Operating Cash Flow	0.00	86.14B	79.57B	66.88B	58.19B	71.75B
Investing Cash Flow	0.00	-61.22B	-7.17B	-8.52B	-13.30B	-1.51B
Financing Cash Flow	0.00	-54.50B	-43.20B	-52.90B	-59.75B	-33.93B

Japan Exchange Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1765.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8697, the sentiment is Positive. The current price of 1765.5 is above the 20-day moving average (MA) of 1722.15, above the 50-day MA of 1626.53, and above the 200-day MA of 1565.09, indicating a bullish trend. The MACD of 50.74 indicates Negative momentum. The RSI at 58.09 is Neutral, neither overbought nor oversold. The STOCH value of 53.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8697.

Japan Exchange Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8473	77 Outperform	$2.27T	8.79	17.79%	2.58%	26.89%	150.74%
8604	76 Outperform	$3.08T	8.50	11.06%	4.58%	4.32%	80.03%
8697	75 Outperform	$1.84T	29.19	20.33%	3.06%	6.93%	6.05%
8601	69 Neutral	$1.54T	9.89	10.33%	4.33%	1.09%	33.43%
8309	68 Neutral	$2.90T	10.44	9.20%	3.82%	19.13%	160.69%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8308	61 Neutral	$3.43T	14.12	8.46%	1.94%	14.71%	29.60%

Japan Exchange Group Corporate Events

JPX Revises Earnings and Dividend Forecasts Amid Market Changes

Japan Exchange Group, Inc. has revised its earnings and dividend forecasts for the fiscal year ending March 31, 2026, due to changes in market conditions. The company expects an increase in operating revenue and net income, leading to a higher dividend payout, reflecting its commitment to maintaining financial health and pursuing investment opportunities.

The most recent analyst rating on (JP:8697) stock is a Buy with a Yen1767.00 price target. To see the full list of analyst forecasts on Japan Exchange Group stock, see the JP:8697 Stock Forecast page.

Japan Exchange Group Reports Strong Q1 Earnings

Japan Exchange Group, Inc. (JPX) operates as a financial instruments exchange group, primarily engaged in providing trading, clearing, and settlement services for various financial products in Japan. The company is a key player in the financial services industry, known for its comprehensive market infrastructure and services.

Japan Exchange Group Reports Q1 2025 Financial Results with Positive Growth

Japan Exchange Group, Inc. reported its consolidated financial results for the three months ending June 30, 2025, showing a year-on-year increase in operating revenue and net income. The company also conducted a 2-for-1 share split effective October 2024, impacting the calculation of earnings per share. Despite these positive results, the company forecasts a slight decline in operating revenue and net income for the fiscal year ending March 31, 2026. The dividend forecast remains unchanged, with a total expected dividend of 43 yen per share, reflecting a mix of ordinary and special dividends.

The most recent analyst rating on (JP:8697) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Japan Exchange Group stock, see the JP:8697 Stock Forecast page.